2 Telcos Unilaterally Hiked Tariffs To Earn Profits of Over Rs1 Lakh Crore per Year- Should TRAI Not Raise Its Voice? Asks EAS Sarma
Moneylife Digital Team 25 October 2024

Raising concerns over the recent tariff hike by two telecom companies and silence from the telecom regulator, EAS Sarma, former secretary to the government of India (GoI), alleges that both the telecom regulatory authority of India (TRAI) and the department of telecommunications (DoT) are behaving as though they had no concern whatsoever to safeguard the customers' interests.

Mr Sarma, in his second letter to AK Lahoti, chairman of TRAI, says, "There is evidently neither competition nor regulation in the telecom industry, allowing the two private operators to appropriate precious bands of 5G spectrum at unconscionably low prices and, adding insult to injury, blissfully hiking up tariffs whenever they wish, giving one the impression that both TRAI and DoT are openly in connivance with those operators." 
 
"Only the other day, the concerned minister, ignoring the directions of the Supreme Court in the 2G spectrum case,  readily agreed to accede to Elon Musk's demand for administrative allocation of satellite spectrum, suggesting that the present government's policies are more amenable to diktats from domineering overseas service providers than to the sane directions of the apex court!" he says.
 
"The latest in this series of happenings in the oligarchy-ridden telecom sector is an indication by one of the private telecom operators that he would merrily resort to yet another tariff hike' to-boost digital infrastructure', as if he is doing a gratuitous favour to the nation," the former secretary says, adding, "Evidently, the concerned private operator takes both DoT and TRAI for granted, knowing well that no one dares to ask him questions. It is bizarre that India's telecom sector should become a happy playground for domestic and overseas operators with no one to regulate them, or to question them."
 
Here is the letter sent by Mr Sarma to the TRAI chairman…
 
Dear Shri Lahoti,
 
I write this in continuation of my earlier letter of 10 July 2024, questioning the unilateral action on the part of private telecom operators to hike tariffs, with both TRAI and the Department of Telecommunications (DoT) behaving as though they had no concern whatsoever to safeguard the customers' interests.
 
In my letter cited, I cautioned both TRAI and DOT that the last steep tariff hike by the two private telecom operators allowed them to pocket tens of thousands of crores of rupees at the cost of millions of helpless customers. 
 
There is evidently neither competition nor regulation in the telecom industry, allowing the two private operators to appropriate precious bands of 5G spectrum at unconscionably low prices and, adding insult to injury, blissfully hiking up tariffs whenever they wish, giving one the impression that both TRAI and DOT are openly in connivance with those operators. 
 
Only the other day, the concerned Minister, ignoring the directions of the apex court in the 2G spectrum case,  readily agreed to accede to Elon Musk's demand for administrative allocation of satellite spectrum, suggesting that the present government's policies are more amenable to diktats from domineering overseas service providers than to the sane directions of the apex court!
 
 
Evidently, the concerned private operator takes both DoT and TRAI for granted, knowing well that no one dares to ask him questions. 
 
It is bizarre that India's telecom sector should become a happy playground for domestic and overseas operators with no one to regulate or question them.
 
What is happening today in the telecom spectrum, whether it is 5G spectrum allocation or private operators merrily fleecing customers at their will, or overseas service providers dictating DOT's policies, presents a sad spectacle of the Ministry's and TRAI's total surrender to domestic and overseas private oligarchs, a matter that certainly calls for an independent enquiry, as otherwise it is millions of helpless customers who will continue to pay for the unduly huge profits that those oligarchs pocket.
 
I am marking a copy of this letter to the cabinet secretary to order an independent enquiry so that acts of malfeasance, if any, on the part of all those concerned may come to light, for the Parliament and the public to discuss and act urgently.
 
Regards,
 
Yours Sincerely,
 EAS Sarma
Comments
barokhoka1956
1 week ago
India and majority of it's people are far away from a corporate system of economy in each and every sectors of the society. Sooner the Government feel it, better would be their vote bank.
ppindia18
1 week ago
India has the lowest 4G, 5G tariffs in the world, it also has the lowest ARPU in the world. too much of revdi culture is casing phantom heartburns.
kalkrish
2 weeks ago
Fully agree with Mr Sarma. In fact when telcos hiked plans, I sent a protest mail to TRAI. TRAI just forwarded that mail to Airtel and the Airtel staff started sending me mails and even calling me. It was highly improper on the part of TRAI
r_ashok41
2 weeks ago
yes truly said that we moving into a capitalistic society where only the people with money works and ordinary people are nowhere and their voices are snubbed as if they should not be alive and the govt is withdrawing all the facilities to them slowly .what as before covid has not been restored even though it was two years since
isaacj56
2 weeks ago
The ruling government is for the corporate companies at the cost of common man to get favour for their party.
gssatheesh6
2 weeks ago
It is notable letter two jio and vi is having about 80 crores customer has enhanced an average ARPU of about rupees 80 per month shall earn them rs 6400 crores per month with marginal GST at 18 % to GOI / STATES. Earning. WHY TRAI AND DOT IS NOT Replying TO THIS. It appreciated Honourable Suprime Court To Register SUMOTO CASE AGAINST TRAI / DOT
drmlyadav
2 weeks ago
Both the points raised are very important, but I think Alan musk should not be alloted satellite spectrum administratively. He will crush the Indian both ambani(jio) and mittal(Airtel) as no international or national operator has low earth satellites, no one has satellite launch rockets of their own. So in future when mobile is replaced by satellite phones, he will be big, big, big winner at the cost of JIO and Airtel. So may be jio and allowed to collect war chest to fight Musk at a later date.
k_rama22
2 weeks ago
Well written. TRAI is acting in such a fashion that they are in collusion with Govt. Its high time citizens raise their voice well brought up Money life. Thanks
sunielramchandani
2 weeks ago
Why no PIL?
r_ashok41
2 weeks ago
TRAI was formed for regulating but looks like it is only paper and they are not able to regulate these service providers and trai needs to be strict and take necessary action on the service providers.
Cable network for TV channels itself TRAI made a mess since after regulation the price increased for customers .TRAI has been very slow to form rules in support of the customers and also looks like some people are hand in gloves with the service providers.Govt should think when forming the new trai personnel some one who is strong and can talk to the service providers keeping customers needs.
Jaadugar Accountants of Royal Orchid Hotels and Bombay Dyeing! -Part 7
Ranganathan V, 25 October 2024
This series on account frauds has already exposed the blatant loot of public funds through disguised lending to related parties like Reliance Housing Finance Ltd (RHFL) or an outright burglary as in the Dewan Housing Finance...
SEBI Slaps Rs20 Lakh Fine on 4 for Trading in Illiquid Stock Options
Moneylife Digital Team 22 October 2024
Market regulator Securities and Exchange Board of India (SEBI) has imposed penalties of Rs20 lakh on four entities found guilty of engaging in non-genuine trading activities within the illiquid stock options segment of the Bombay...
RBI Slaps Rs1.50 Lakh Penalty on Nazareth Urban Cooperative Bank and Family Home Finance for Compliance Failures
Moneylife Digital Team 22 October 2024
Reserve Bank of India (RBI) has imposed a penalty of Rs1.50 lakh on Nazareth Urban Cooperative Bank Ltd from Tamil Nadu and Family Home Finance Pvt Ltd from Maharashtra, a non-banking financial company (NBFC), for non-compliance with...
SEBI Imposes Rs2.63 Crore Penalty on 15 Entities for Synchronised Trading
Moneylife Digital Team 22 October 2024
Market regulator, Securities and Exchange Board of India (SEBI) has levied a penalty of Rs2.63 crore on 15 entities for engaging in Synchronised trading in the shares of Manaksia Coated Metals and Industries Limited (MCMIL).
 
The...
Array
Free Helpline
Legal Credit
Feedback